IIMC PGPEX 09-10 Blog

Private Equity in India…

PGPEX 3rd batch student,XXX, participated in Asia’s biggest PE&VC event in Mumbai few weeks back. His thoughts are etched here..

Private Equity (PE) is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. Investments in PE most often involve either an investment of capital into an operating company or the acquisition of an operating company.  In 2008, PE firms raised a total of $450 Billlion USD whereas managed total funds worth $2.5 trillion USD.

PE in India is quite recent only couple of years old. However global PE firms are interesting challenges in Indian industry. PE funds are customizing their India strategy keeping in mind the local realities the relatively small size of companies seeking capital, promoters’ reluctance to cede control, and local takeover regulations, among others. Their focus is moving from big-ticket transactions, quite common abroad and frequently running into a few hundred million dollars, to smaller deals and minority stakes.

Such Indianization of global funds in India can be an interesting study and would throw light on the challenges PE firms are facing and the transformation they are going through.

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October 25, 2009 - Posted by | Uncategorized

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